24 Looking to build Credit... What are some good tips on your first Credit Card

[jon4rd]

Yes family in the military, military dependent, live with someone that is a NFCU member, or if you work for specific government agencies. I believe all you need is their military id#. Just go to the site and see what it says when you sign up nfcu.org .

Preesh, repped. Gonna see if I can get one with a high limit to get my utilization down. Maybe I can get a 20k+ limit card one day . My score jumped 30 points this month probably because I finally have a revolving credit account. I've come a long way fellas from a 541 in November 2014 to a 731 currently . Many thanks to all those providing helpful info in here

 

[capital sb]

Congrats on the score repair . Let me know if you get appoved for the card. NFCU has utilization buffer 15K max checking line of credit. I have one 15K CLOC, thinking about adding another one on a different checking account in 2017.

 

[wrightone86]

Fellas out here flourishing 

Glad you guys pointed out that Discover thing and the multiple payments. I was definitely about to send a couple different payments from accounts that I have. I will just move the money to one and pay in a lump or just space the payments out or something. 

 

[iamdef]

I have a fairly fool proof plan to be debt free in about 4 years which will require me to sacrifice my full income tax for the next 4 years. Which honestly would be the easiest way to do it since, in my opinion, it's basically "free" money or money I ain't have anyway. Only trouble will be convincing my wife that it's worth it and not allowing her to claim our daughter on her taxes so I can maximize my return

 

[polosanddunks]

I have a fairly fool proof plan to be debt free in about 4 years which will require me to sacrifice my full income tax for the next 4 years. Which honestly would be the easiest way to do it since, in my opinion, it's basically "free" money or money I ain't have anyway. Only trouble will be convincing my wife that it's worth it and not allowing her to claim our daughter on her taxes so I can maximize my return

Its not free money. You basically gave the govt an interest free loan for a year in a way.

 

[iamdef]

I understand that it's technically my money that i'm getting back but since I don't factor it into my income at all it's extra money "out of nowhere". basically I won't miss it if i don't get it because my day to day is taken care of

 

[nrg1604]

ive heard from many people that paying off your card completely can actually hurt your credit score. One person was a loan officer.

Lol I see this myth won't ever die. I have a score above 830 and always paid off every monthly balance.

 

[clarkchaz1988]

Lol I see this myth won't ever die. I have a score above 830 and always paid off every monthly balance.

That's just a credit card balance your paying off that's, not serious debt. But if you pay off a mortgage or auto loan your score will fall briefly.

 

[dam itz lou]

Anyone invest through lending club ?

 

[crcballer55]

 
I understand that it's technically my money that i'm getting back but since I don't factor it into my income at all it's extra money "out of nowhere". basically I won't miss it if i don't get it because my day to day is taken care of

Actually, it's costing you money since you're not taking it immediately to pay towards your debts. Why not just take the money right out of your check to a separate account dedicated to paying off your debts?

 

[capital sb]

Actually, it's costing you money since you're not taking it immediately to pay towards your debts. Why not just take the money right out of your check to a separate account dedicated to paying off your debts?

Alot of people don't gravitate towards this thinking, most use it as a "savings account" they don't have to think about or have access to, and most just think it's free money.

I will be adjusting my withholdings to get more money in my paycheck year round, I don't want more than a $1000-$1500 refund ever.

 

[humpasaurus rex]

Yeah the waiting for the return at the end of the year loses money if you have debt since interest accumulates. I would like to have less withheld, but don't want to have to owe at the end of the year. I have to research how to set that up.

 

[nrg1604]

Lol I see this myth won't ever die. I have a score above 830 and always paid off every monthly balance.

That's just a credit card balance your paying off that's, not serious debt. But if you pay off a mortgage or auto loan your score will fall briefly.

Person I quoted was talking about credit card.

 

[iamdef]

Actually, it's costing you money since you're not taking it immediately to pay towards your debts. Why not just take the money right out of your check to a separate account dedicated to paying off your debts?

Yeah the waiting for the return at the end of the year loses money if you have debt since interest accumulates. I would like to have less withheld, but don't want to have to owe at the end of the year. I have to research how to set that up.

Good points. It's much easier to have a lump sum.

 

[melo0115]

 

 

yeah okay, I have ck and my credit score now in the 300s man, trying to get up. That's why I suggested if y'all had alternatives other than paying the 100 bucks a month , that would be been like a plan c.

I gave you alternatives. Find out what is on your credit report, not what your score is.

Go to Credit Reports on credit karma you will want to look at Public Records and Collections,those two areas will tell you what your negatives are.

That is step one, after you figure out what is one you report we can give you direction in what actions to take.

Even better is to go to annualcreditreport.com, which is the official record reported by the 3 credit bureaus. Choose all 3 and then go through and see what each one is reporting and take direct action from there.

If there is an inaccuracy, go to each agency's dispute section on their website and dispute any inaccuracies.

https://dispute.transunion.com/dp/dispute/landingPage.jsp

http://www.experian.com/disputes/main.html

https://www.ai.equifax.com/CreditInvestigation/home.action

If you have any records you don't think are yours, go to the reporting company and request they show proof the debt is yours and that they have 30 days to respond under the "Fair Debt Collections Practices Act". Make sure to send the letter "Return Receipt requested" to show proof they received it and that their countdown has started.

So I took your advice @crcballer55 I did the annualcredit report look up. All three reports are showing 2 accounts in collection, but credit karma is showing 4 accounts.. All of the four accounts are vaild, but the annual credit report is only showing 2 of them, so I'm thinking the other ones are legit closed.. And I should dispute? 

 

[crcballer55]

 

 

 

yeah okay, I have ck and my credit score now in the 300s man, trying to get up. That's why I suggested if y'all had alternatives other than paying the 100 bucks a month , that would be been like a plan c.

I gave you alternatives. Find out what is on your credit report, not what your score is.

Go to Credit Reports on credit karma you will want to look at Public Records and Collections,those two areas will tell you what your negatives are.

That is step one, after you figure out what is one you report we can give you direction in what actions to take.

Even better is to go to annualcreditreport.com, which is the official record reported by the 3 credit bureaus. Choose all 3 and then go through and see what each one is reporting and take direct action from there.

If there is an inaccuracy, go to each agency's dispute section on their website and dispute any inaccuracies.

https://dispute.transunion.com/dp/dispute/landingPage.jsp

http://www.experian.com/disputes/main.html

https://www.ai.equifax.com/CreditInvestigation/home.action

If you have any records you don't think are yours, go to the reporting company and request they show proof the debt is yours and that they have 30 days to respond under the "Fair Debt Collections Practices Act". Make sure to send the letter "Return Receipt requested" to show proof they received it and that their countdown has started.

So I took your advice @crcballer55 I did the annualcredit report look up. All three reports are showing 2 accounts in collection, but credit karma is showing 4 accounts.. All of the four accounts are vaild, but the annual credit report is only showing 2 of them, so I'm thinking the other ones are legit closed.. And I should dispute? 

Also another question. I just bought a pre paid card and put a certain amount of money on it, so i could call and pay a collection. Would that be a dumb thing to do? 

Take Credit Karma with a grain of salt. It's not on "official" report. If the 3 bureaus say you're clean, you're clean for all intents and purposes. Nobody that matters is going to consult Credit Karma to pull your credit. Make sure you save a copy of your reports for future reference. I save a PDF of each file in my "credit folder" should any issues arise.

Regarding the prepaid card, if you go that route, as long as they don't have access to any of your personal accounts you should be ok. Make sure you keep a record of the payments too and any settlement agreements you came to. Collection companies are notorious for reselling debts that have already been paid and badgering you for payments again.

 

[melo0115]

Yeah, thats what i was worried about.. I just want to settle it so they take it off, but sometimes they get shady and you have to put way more leg work in.. 

You gave me some good advice also, for calling and showing proof of credit.. So back to the whole credit karma doesn't matter. I'm still getting letters from the company's to pay the debts, these are the company's I stated that I didn't see on the official credit report, I know im sound basic as **** right now, but I have to call these companies and ask them to show proof of debt? or since they arent showing up on the officials then its whatever.. Obviously if their sending me letters I need to get them to stop, but just trying to see from your POV.

 

[crcballer55]

 
Yeah, thats what i was worried about.. I just want to settle it so they take it off, but sometimes they get shady and you have to put way more leg work in.. 

You gave me some good advice also, for calling and showing proof of credit.. So back to the whole credit karma doesn't matter. I'm still getting letters from the company's to pay the debts, these are the company's I stated that I didn't see on the official credit report, I know im sound basic as **** right now, but I have to call these companies and ask them to show proof of debt? or since they arent showing up on the officials then its whatever.. Obviously if their sending me letters I need to get them to stop, but just trying to see from your POV.

Basically. Tell them if they can't show proof, then you're not going to pay it. If they keep bothering you, threaten to report them. Also, try to record any conversations they have if they keep bothering you.

No matter what, try to stay calm. Play poker with them. They're always looking for something that will upset you and get you to make paying them a priority.

It's also possible you did actually owe it at one time, but it's just fallen off. If so, you can see if they'll accept 10-20 cents on the dollar for something stating you've repaid it. (which you should keep FOREVER)

Good luck.

 

[melo0115]

Thanks brah.. Time to handle this **** once and for all. 

I opened up a capital one card to start the rebuilding process, making sure I follow some of the guidance of members giving out some good info. 

Last question, I'm at a 600, how long do you think it could take to slide into the mid 700's? 

 

[jon4rd]

Thanks brah.. Time to handle this **** once and for all. 

I opened up a capital one card to start the rebuilding process, making sure I follow some of the guidance of members giving out some good info. 

Last question, I'm at a 600, how long do you think it could take to slide into the mid 700's? 

If you get everything paid off and make on time payments on the card and keep utilization down you should get there in like a year. I came from 541 to 731 in like 13 months. Had some delinquencies on my report which I paid off and made sure I made on time payments every month on my loans. Best of luck bruh I know you'll bounce back just keep grinding

 

[melo0115]

Appreciate it mans!! Both @crcballer55  & @jon4rd. 

Glad you fixed that score, and I'm not so much worried about the score just making sure in the future if I need or want to use credit, House cars vacation children(dont have any yet) etc.. That its available.

You two have a good New Year! 

 

[throwback1718]

I know this is about credit, but I wanna know you guys thoughts on us savings bonds. Wanna get one for my newborn

 

[jewseejay]

I know this is about credit, but I wanna know you guys thoughts on us savings bonds. Wanna get one for my newborn

Why?

Srs question. What drove you towards bonds inparticularly

 

[water runs dry]

Maybe you should consider those 529 plans, but that's more for college I believe.

 

[NewWave90]

Right now rates are borderline disrespectful.

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